Pembina appoints Burrows as new CEO and president

Pembina appoints Burrows as new CEO and president

MOSCOW (MRC) -- Canadian energy midstream firm Pembina Pipeline has appointed Scott Burrows as its new president and CEO, said Reuters.

Burrows took over as interim CEO in November after Mick Dilger left. Before that, he was Pembina’s CFO for about seven years.

Meanwhile, Cameron Goldade will continue as interim CFO while management and the board evaluate internal and external candidates for that position. Goldade was previously vice president, capital markets.

Pembina is a large supplier of natural gas liquids (NGL), including ethane, to the petrochemical industry in Alberta.

As per MRC, Pembina Pipeline and Kuwait's Petrochemical Industries Company (PIC) have made a final investment decision to build a new propane dehydrogenation plant and polypropylene (PP) plant in Alberta province, Canada. Thus, the JV (50:50) created for the construction of these enterprises - Canada Kuwait Petrochemical Corp (CKPC) - plans to commission new facilities in mid-2023.

As per MRC, Pembina Pipeline booked a Canadian dollar (CD) 323m (USD256m) impairment charge in Q4 on its share of a planned integrated propane dehydration/polypropylene (PDH/PP) project in Alberta province.

Pembina Pipeline has been a gas supplier to the North American energy system for over 60 years. Pembina owns and operates pipelines that transport a variety of hydrocarbon liquids, including conventional and synthetic crude oils and others, produced in Western Canada and North Dakota.
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BASF increases stake in B2B Cosmetics

BASF increases stake in B2B Cosmetics

MOSCOW (MRC) -- BASF is to further invest in France’s B2B Cosmetics after its initial investment in 2019, said the company.

Financial details were not disclosed. BASF and B2B Cosmetics have developed the branded technology Emuage, which aims to deliver “freshly-made, personalised cosmetics” to customers. The two firms are now aiming to scale up production of the technology and aim to open stores selling the product in Switzerland, France, and the Middle East in coming months.

"The Emuage technology allows users to create their own individualised personal care products by simply choosing capsules, placing them into the machine and receiving the final product – for example for hair, sun or skin care,” said the company.

In January, 2019, BASF and B2B Cosmetics announced an exclusive, long-term strategic partnership in the field of personalized personal care products, including a strategic investment into B2B Cosmetics by BASF. The French company B2B Cosmetics will contribute a unique personalization system, marketed under the name Emuage technology. BASF will bring in expertise in personal care solutions.

As MRC wrote before, BASF will build a battery recycling prototype plant in Schwarzheide, Germany, at the site of its cathode active materials (CAM) plant.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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HollyFrontier Corporation reports Q4 and full year results

HollyFrontier Corporation reports Q4 and full year results

MOSCOW (MRC) -- HollyFrontier Corp posted a wider-than-expected quarterly loss on Wednesday, as the U.S. refiner faced heavy refining maintenance and weather-related downtime, sending its shares down as much as 8%, said Hydrocarbonprocessing.

Flooding in British Columbia, Canada, cut crude oil supplies to Puget Sound refinery and severe weather conditions and operating problems restricted output at processing plants in New Mexico and Oklahoma, HollyFrontier said last month.

Its refinery utilization in the reported quarter fell to 83.6%, from 93.8% in the previous year and total operating costs and expenses also rose nearly 88% to USD5.64 B. On an adjusted basis, the company posted a quarterly loss of 11 cents per share, slightly bigger than average analysts' expectation of 9 cents per share, according to Refinitiv IBES. For the current quarter, HollyFrontier expects to run between 490,000 and 510,000 bpd of crude.

The outlook reflects impact of weather-related downtime at Puget Sound refinery, a scheduled turnaround at the Woods Cross refinery, Utah, as well as maintenance activities at the Navajo refinery, New Mexico, throughout the first quarter. However, a sustained recovery in demand for fuel and refined products from the pandemic-driven lows helped narrow HollyFrontier's losses from the year-ago numbers.

Refinery gross margin for the 4Q of 2021 was USD8.70 per produced barrel, a 116% increase from the year-ago period. Throughput, or the amount of crude processed, rose 12% in the quarter to 462,740 bpd. "We believe that demand for transportation fuels will continue to strengthen as the global economy recovers from the pandemic," Chief Executive Officer Michael Jennings said on a conference call. The Dallas, Texas-based refiner said 4Q net loss attributable to stockholders narrowed to 24 cents per share, compared with a loss of 73 cents per share, a year earlier.

"Within refiners, we believe HFC is best positioned to grow earnings in the next year by adding Puget Sound, Sinclair assets and its renewable diesel projects," said Manav Gupta, analyst at Credit Suisse. Shares of HollyFrontier were trading 6.5% lower at USD32.20 in morning trade on the NYSE.

As per MRC, HollyFrontier Corporation has announced the completion of the previously announced acquisition of the Puget Sound Refinery, the on-site cogeneration facility and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US for aggregate cash consideration ofUSD613.6 mn, which consists of a base cash purchase price of USD350.0 mn, hydrocarbon inventory with an estimated closing value of approximately USD266.2 million and other closing adjustments and accrued liabilities of USD2.6 mn.

As reported MRC, Hollyfrontier and its pipeline partner will buy almost all of Sinclair Oil's assets in two deals totaling around USD2.6 billion, the companies said, adding new refining, pipeline and storage assets to their portfolio. The deals come as US fuel demand continues to recover from last year's coronavirus-led record lows, with states starting to reopen and road travel trending toward pre-pandemic levels.

HollyFrontier Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel, jet fuel and other specialty products. HollyFrontier owns and operates refineries located in Kansas, Oklahoma, New Mexico, Washington and Utah and markets its refined products principally in the Southwest US, the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. In addition, HollyFrontier produces base oils and other specialized lubricants in the US, Canada and the Netherlands, and exports products to more than 80 countries. HollyFrontier also owns a 57% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HollyFrontier Corporation subsidiaries.
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Solvay posts strong financial results for 2021

Solvay posts strong financial results for 2021

MOSCOW (MRC) -- Sollvay's net sales for the full year 2021 were up +17% organically to EUR10.1 billion versus 2020, with 12% of the growth driven by volumes and 5% driven by pricing, as per the company's press release.

More than half of the full year impact from price initiatives were realized in Q4. Full year net sales were up +4.4% organically compared to 2019, reflecting continued momentum in key markets including auto and electronics. In the fourth quarter, net sales increased +22.4% versus 2020 and +17.1% versus 2019.

The acceleration of price increases largely offset a EUR465 million impact from variable cost inflation.
Structural cost savings for the full year 2021 amounted to EUR213 million, bringing total structural savings since 2019 to EUR390 million, or 80% of its targeted EUR500 million (annual run-rate) by the end of 2024.

Underlying EBITDA increased +27% versus full year 2020, setting a new record at EUR2,356 million. EBITDA was up +8% versus 2019, despite the slower recovery in the civil aero market, demonstrating good operating leverage. Underlying EBITDA margin rose to 23.3%, 160 basis points higher than 2020 despite the high inflationary environment. EBITDA in the fourth quarter grew +24% organically, or +19% excluding net EUR27 million of one-time gains.

Underlying net profit amounted to EUR1.0 billion, up 68.3% compared to 2020.

Strong free cash flow generation of EUR843 million reflecting higher profits and further working capital improvements which also enabled the funding of an increase in capital investments to EUR736 million for the year.

Continued strengthening of the balance sheet with reduced net debt (EUR249 million) and provisions (EUR487 million). This brings the leverage ratio to 1.7x, the lowest since 2015.

ROCE for 2021 reached a record level at 11.4% versus 6.9% in 2020 and 8.1% in 2019.
Total proposed dividend of €3.85 per share, reflects a EUR0.10 per share increase, subject to Shareholders’ approval.

Against an unprecedented inflationary cost environment, pricing actions in 2022 are expected to accelerate, and full year EBITDA is estimated to grow organically by mid-single digits. With the current cycle of growth investments underway, Free Cash Flow is estimated to exceed EUR650 million.

As MRC reported earlier, in August, 2020, through the acquisition of the Solvay polyamide (PA) business, BASF enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services. BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASF’s position as a solution provider to develop advanced material solutions for key industries.

Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 24,100 employees in 64 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet plan crafted around three pillars: protecting the climate, preserving resources and fostering better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities.
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NSRP hit by power outage

NSRP hit by power outage

MOSCOW (MRC) -- A power outage has hit Vietnam's largest refinery, Nghi Son (NSRP), forcing some of its units to shut down, reported Reuters with reference to two sources familiar with the matters.

"The incident happened on Monday," one of the sources said without elaborating.

As MRC reported earlier, on 26 January, 2022, state oil firm PetroVietnam blamed NSRP for the recent production cut. State media had reported PetroVietnam had failed to make an early payment under a "Fuel Products Offtake Agreement" (FPOA) with the refinery, causing financial difficulties for Nghi Son. But PetroVietnam, which owns 25.1% of the 200,000 barrel-per-day refinery in Thanh Hoa province, insisted it was not to blame.

We remind that NSRP shut its new PP plant in Vietnam for maintenance on 24 August, 2021, instead of the initially scheduled date of 17 August, for approximately three weeks. The company decided to postpone the maintenance shutdown at this plant by one week from the previous schedule due to the COVID-19 related lockdown. Thus, the new PP plant came back on-line in mid-September, 2021.

We also remind that Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1% owned by Japan’s Idemitsu Kosan Co, 35.1% - by Kuwait Petroleum, 25.1% - by PetroVietnam and 4.7% - by Mitsui Chemicals Inc.

According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes in 2021, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.
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